Answer:
Value added
Explanation:
Value-added - it is the total difference that comes out between the product value in the market and the cost of producing that product. cost of a product is based on the survey which gives the idea that how much cost may be assigned to the product.
The value of this difference help to determine the profit on products.
Higher the value of add, higher will be the charges of product and higher will be the revenue collected.
Answer:
$1,545,000
Explanation:
The formula to compute the cost of the building equal to
Rate of return = (Rental income - expenses) ÷ (cost of building
)
where,
Rate of return = 8%
Rental income equals to
= ($600 × 4 units + $750 × 4 units + $725 × 4 units + $800 × 4 units) × 12 months
= $138,000
Total expense
= $1,200 × 12 month
= $14,400
Now the cost of building would be
8% = ($138,000 - $14,400) ÷ (cost of building
)
8% = $123,600
So, the cost of building equal to $1,545,000
Answer:
Predetermined manufacturing overhead rate= $14.65 per direct labor hour
Explanation:
Giving the following information:
Estimated direct labor hours= 40,000
Estimated fixed overhead= $466,000
Estimated variable overhead rate= $3.00 per direct labor-hour.
<u>To calculate the predetermined manufacturing overhead rate we need to use the following formula:</u>
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Predetermined manufacturing overhead rate= (466,000/40,000) + 3
Predetermined manufacturing overhead rate= $14.65 per direct labor hour
Answer:
Correct option is C.
<u>If the economy is at full capacity, then the AS curve will be vertical</u>
Explanation:
The long-run aggregate supply curve is perfectly vertical, which reflects economists' belief that the changes in aggregate demand only cause a temporary change in an economy's total output. For the short-run aggregate supply, the quantity supplied increases as the price rises.
The full capacity AS curve is a long-run AS curved and it is vertical as the potential output level is denoted by it with the fully employed resources.
Answer:
(a) Linear model
Subject to:
(b) Standard form:
Subject to:
Explanation:
Given
Solving (a): Formulate a linear programming model
From the question, we understand that:
A has a profit of $9 while B has $7
So, the linear model is:
Subject to:
Where:
Solving (b): The model in standard form:
To do this, we introduce surplus and slack variable "s"
For inequalities, we add surplus (add s)
Otherwise, we remove slack (minus s)
So, the standard form is:
So, the linear model is:
Subject to: